Bitcoin

Bitcoin exchange-traded products begin trading on the London Stock Exchange

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1 month ago

August 7, 2024

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The UK’s Financial Conduct Authority gave the go-ahead for the first bitcoin exchange-traded products (ETPs) to trade on the London Stock Exchange. WisdomTree and 21Shares, two asset managers, both put Bitcoin ETPs on the LSE today.

Just last week, the FCA said that Bitcoin ETNs could be added to the market. This allowed issuers who had been waiting for regulatory approval to bring Bitcoin ETNs to the LSE to start them today.

All of the ETNs give investors a way to bet on the price of bitcoin. At the moment, FCA rules say that only professional buyers can get to them. Alex Pollak, head of UK for 21Shares, said, “But the game-changer in the UK will be when the retail ban is lifted. Right now, there is a retail ban on trading bitcoin and ether ETNs.”

The launch today is a big step forward for both Bitcoin usage and London’s plans to become a centre for digital assets. There are already controlled bitcoin funds in the US, Europe, and Hong Kong, which puts pressure on the FCA to catch up.

Ophelia Snyder, co-founder of 21Shares, said, “The UK is one of the deepest and most liquid capital markets in the world.”

In order to open its market, the FCA is doing it in stages. Professional investors can now buy bitcoin ETNs on the London Stock Exchange (LSE), giving them their first controlled access to crypto assets.

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